Home/All Topics/Impact Legislative and Policy Analysis Section 70116: Extension and enhancement of savers credit allowed for ABLE contributions Executive Summary Section 70116 permanently preserves a federal tax credit pathway for certain people with disabilities who contribute to their own ABLE accounts. It amends Internal Revenue Code section 25B so that an eligible individual’s qualified ABLE…

Home/All Topics/Impact Legislative and Policy Analysis Section 70115: Extension and enhancement of increased limitation on contributions to ABLE accounts Executive Summary Section 70115 permanently extends and modestly enhances the higher contribution limits for Achieving a Better Life Experience accounts, commonly called ABLE accounts. ABLE accounts are tax-advantaged savings accounts under Internal Revenue Code section 529A…

Home/All Topics/Impact Legislative and Policy Analysis Section 70114: Extension and modification of limitation on wagering losses Executive Summary Section 70114 changes the federal income-tax treatment of gambling and wagering losses beginning with taxable years after December 31, 2025. Before this change, taxpayers generally could deduct gambling losses only up to gambling winnings, and recreational gamblers…

Home/All Topics/Impact Legislative and Policy Analysis Section 70113: Extension and modification of limitation on deduction and exclusion for moving expenses Executive Summary Section 70113 permanently continues the post-2017 limitation on moving-expense tax benefits for most taxpayers, while expanding the remaining exception beyond active-duty Armed Forces members to include certain employees and new appointees of the…

Home/All Topics/Impact Legislative and Policy Analysis Section 70112: Extension and modification of qualified transportation fringe benefits Executive Summary Section 70112 changes the federal tax treatment of qualified transportation fringe benefits under Internal Revenue Code section 132(f). It does two main things. First, it permanently removes the qualified bicycle commuting reimbursement exclusion from the list of…

Home/All Topics/Impact Legislative and Policy Analysis Section 70111: Limitation on tax benefit of itemized deductions Executive Summary Section 70111 rewrites Internal Revenue Code section 68 for tax years beginning after December 31, 2025. It replaces the older overall limitation on itemized deductions with a new formula that reduces itemized deductions for taxpayers whose income reaches…

Home/All Topics/Impact Legislative and Policy Analysis Section 70110: Termination of miscellaneous itemized deductions other than educator expenses Executive Summary Section 70110 permanently ends the scheduled return of miscellaneous itemized deductions that were subject to the two-percent adjusted-gross-income floor before the Tax Cuts and Jobs Act. Under pre-OBBBA law, those deductions were suspended only for taxable…

Home/All Topics/Impact Legislative and Policy Analysis Section 70109: Extension and modification of limitation on casualty loss deduction Executive Summary Section 70109 makes permanent the Tax Cuts and Jobs Act-era limitation on individual personal casualty loss deductions, while expanding the qualifying category from federally declared disasters to include certain State declared disasters. In practical terms, taxpayers…

Home/All Topics/Impact Legislative and Policy Analysis Section 70108: Extension and modification of limitation on deduction for qualified residence interest Executive Summary Section 70108 makes permanent the post-2017 limitation on the home mortgage interest deduction and modifies the qualified residence interest rules to restore mortgage insurance premiums as deductible qualified residence interest beginning with taxable years…

Home/All Topics/Impact Legislative and Policy Analysis Section 70107: Extension of increased alternative minimum tax exemption amounts and modification of phaseout thresholds Executive Summary Section 70107 permanently extends the higher individual alternative minimum tax exemption structure created by the Tax Cuts and Jobs Act, while also tightening the income range over which that exemption phases out…

Home/All Topics/Impact Legislative and Policy Analysis Section 70106: Extension and enhancement of increased estate and gift tax exemption amounts Executive Summary Section 70106 raises the federal estate and gift tax basic exclusion amount to $15 million beginning in 2026 and makes the higher exemption structure permanent rather than allowing the temporary Tax Cuts and Jobs…

Home/All Topics/Impact Legislative and Policy Analysis Section 70105: Extension and enhancement of deduction for qualified business income Executive Summary Section 70105 permanently extends and modestly expands the qualified business income deduction under Internal Revenue Code section 199A for noncorporate owners of pass-through businesses, including many sole proprietors, partners, S corporation shareholders, trusts, estates, and certain…